Inquiry finds two health chiefs guilty of nepotism

TWO of Tasmania’s most senior bureaucrats have been found by an anti-corruption inquiry to have engaged in nepotism.

TASMANIA’s Liberal government has promised a major shake-up of the health bureaucracy after two of its most senior officials were found by an anti-corruption inquiry to have engaged in nepotism.

An Integrity Commission report released yesterday found the chiefs of two of the state’s three health organisations had engaged in official misconduct by breaching procurement and hiring rules to the benefit of family and associates.

Recently sacked Tasmanian Health Organisation — South acting chief executive Jane Holden and North West chief executive Gavin Austin, both of whom were recruited from New Zealand, remain on the public payroll but face potential action under the State Service Act.

The commission found they had failed to follow proper procedures, to the benefit of Ms Holden’s husband and Mr Austin’s wife and son.

“This investigation revealed that family and associates of Ms Holden and Mr Austin were given consultancies, employment and contracts,’’ the report, tabled in state parliament, concludes.

Health Minister Michael Ferguson told parliament the findings were “appalling” and indicative of a health system that had lost its way and required “fundamental change”.

Suggesting the Labor government defeated in March may have shown a “blind eye”, Mr Ferguson flagged major reform of the state’s three health organisations, which many medicos believe should be merged into one.

The commission found the two chief executives’ misconduct had cost taxpayers more than $500,000, not including the salaries of family and associates hired inappropriately. It lambasted the culture of the health bureaucracy as one of “spin” and “cover-up”.

“It is telling that it took a member of the public to complain to the commission, rather than any staff members who — if the ethical culture had been healthy — could have been expected to have raised the alarm,” the commission said.

Neither official could be contacted yesterday.

The commission noted both had said they relied on staff to ensure compliance with relevant policies.

It found this was not an acceptable excuse.